WEEKEND RUNDOWN 06/07/19

It was a very exciting week if you own Adriatic Metals, as I do. On Tuesday, the company announced Sandfire Resources had increased its ownership in the company from 7.5% to 11.13%. All shares were bought on the market by Sandfire over a 5 day period. The following day, Adriatic announced it had appointed The Bank of Montreal (trading as BMO Financial Group) and Hannam & Partners as the Company’s corporate advisors.

The chart below shows the company is now in ‘blue sky’ territory and it’s anyone’s guess at the moment where the share price will be this time next week.

Independence Group IGO

On Thursday, IGO announced ‘better than guidance production performance at Nova’ for FY19 Nickel production. IGO is my Nickel pick for a mid-tier miner. The company is on an upward trend from its lows in 2016. As per my previous article on Nickel and its importance in the future, I anticipate that this company will go from strength to strength.

Source: IGO

Great Bear Resources (GBR)

On Thursday, GBR announced an oversubscribed private placement of $10.9 million CAD. Proceeds from the placement will be used for further exploration at there flagship ‘Dixie’ project. GBR is now at an all-time high with money in the bank and plenty of drilling ahead of them.

GOLD

Gold ended the week just under $1400 USD, being its worst week since mid-April. The precious metal ended up inside the long term wedge, after breaking out for most of the week, touching highs of $1438 USD (highest in 6 years).

IRON ORE

Iron ore continued its steep climb during the week but fell by 4.92% on Friday. According to Chinese state media reports, Qu Xiuli (the deputy chair of China’s Iron and Steel Association) told a conference in Shanghai on Friday that “relevant departments” were looking into the recent jump in prices. The sharp pullback we have seen could be linked to China’s announcement of their investigation into the steep rise in the commodity.

VANECK VECTORS ETF TRUST JR GOLD MINERS ETF (GDXJ)

The GDXJ, which is my indicator for the junior mining sector, came very close to breaking out of a long term wedge. If gold continues its upward trend and the GDXJ breaks the $35.50 USD price level, I would expect an inflow of money into the junior mining sector.

I leave everyone this weekend with an image that best describes why in the last 50 years, now is the best time to invest in commodities. Have a great weekend and stay safe.